5 signs it might be time to switch business insurance companies

Having the right insurance for your small business is important. So is having the right insurer. Whether you’ve had your policies for years or weeks, it might be time to change your insurance company.

Switching insurance providers could be good for your small business. You might find cover that better suits your needs, premiums that better suit your budget, or an overall better customer service experience. And thanks to the internet, comparing policies and switching can be a no-dramas process!

Why do businesses switch insurance providers?

There are many reasons why a small business might change insurance companies. Here are five major ones:

1. You picked your policies in a rush

Sometimes, you don’t realise you need insurance until someone else brings it up. Certain policies might be necessary to get a trade or professional license, lease commercial premises, or work with specific clients. So, you bought those required policies in a hurry without doing much research.

If you choose your business insurance in a rush, you may want to review it now that things have settled down. Switching insurance providers could help you find cover that is more suitable to your business needs and budget.

2. You haven’t updated your cover since starting your business

Your business probably looks different than it did on day one. Offering new products or services, hiring more employees, and increasing annual revenue are just a few changes that could affect your business insurance cover.

If your business has changed since you first started, you may want to review your policies. You might need to adjust your cover or add new types of insurance to your portfolio. Changing insurance companies could help you ensure that your business services are covered and that you have appropriate coverage limits that match your current operations.

3. You’re looking for savings

Budgets are tight for many small businesses. You may be looking to cut costs in all areas of your business, insurance included. Cutting back—without sacrificing the quality of your insurance cover—might be a priority.

Switching insurance providers might help you find savings. Every insurer has their own formulas for calculating the cost of their insurance policies. Your current insurer may charge one price, while a competitor might charge a lot less. Many insurers also offer combined cover for certain policies, which can also lower how much your insurance costs.

4. Managing your policy isn’t easy

Working with an insurer should be simple. If it’s not, you may want to consider changing insurance companies.

A good insurer makes your life easier. Self-service online portals can take the pain out of requesting certificates of insurance, adjusting your coverage limits, updating your payment details, and taking care of other business insurance admin. Even explaining your coverage in plain terms (instead of complicated insurance jargon) could be a good sign.

5. You’ve had a bad experience

Many insurance companies go above and beyond with customer service. But unfortunately, some do not. Long wait times when you call, not responding to emails or a months-long claim experience with no explanation as to why it took so long could leave you feeling less than loyal to your insurer.

Small business owners have more choices than ever when it comes to choosing an insurance provider. You might consider changing your insurance company to find a more responsive and helpful customer service team.

Wrap up – When you should switch insurance providers

Consider changing your insurance company if:

  • You bought required insurance in a hurry without doing your research.
  • Your business has changed, but your insurance hasn’t.
  • You want to save on your insurance premiums without sacrificing the quality of your cover.
  • Managing your policies is difficult or time-consuming.
  • You had a poor customer service or claims experience.

How to change your insurance company

Ready to switch to a new insurer? You may need to do a bit of admin first to ensure that your small business stays protected.

1. Determine your cover needs

Before you begin to shop around, it’s good to know how much cover you need. This can help you get accurate quotes that reflect your current business operations.

A change in your business may mean that your existing coverage limits no longer suit. You may also have insurance obligations that you must meet, like minimum cover amounts to hold a trade or professional license.

2. Consider your current policy’s terms

An insurance policy’s terms identify who is covered, the property and risks that are covered, the coverage limits, and the policy period (when your cover begins and ends). You may want to pay close attention to your policy terms when deciding whether to switch insurance providers.

Terms such as coverage limits and deductibles can affect how much you may need to pay out-of-pocket when you make a claim. Most insurers will also have exclusions, what’s not covered by your policy, that could influence whether a policy is right for you.

Premiums (the amount you’ll pay for your insurance, either monthly or annually) are also an important consideration for many business owners. Some insurers offer premium discounts if you pay for an entire year at once.

Finally, some insurers charge fees for cancelling mid-policy. Paying these penalties may be worth the expense, depending on your circumstances.

3. Research new insurers

Just like you and your small business, insurance companies are unique. Though price and cover will play a big part in your decision, it may pay to research the providers behind the policies as well.

Recommendations from other business owners and online reviews can help you gauge an insurer’s reputation. You may also look at a company’s financial strength rating, which can indicate that they’re trustworthy and likely able to pay claims for many years to come. Consumer quality awards can be another seal of approval.

4. Purchase your new policies

You’ve found the right cover for your small business from a trustworthy insurer. It’s time to put your new policies in place. Buy your new insurance cover and store the paperwork (policy documents and certificates of currency) someplace safe.

5. Cancel your old cover

Last but not least, it’s time to cancel your existing insurance. Before making the switch, check that your new cover is in place. You’ll want to avoid gaps in cover between when your old policy ends and the new one begins.

Remember to notify anyone who may be affected by your change in insurance company, such as commercial landlords or clients.

A switching insurance providers checklist:

  • Review your current cover and risks to your business. Identify gaps (too little cover, missing policies) and determine your insurance needs.
  • Review the policy terms of your current cover. Consider if they still work well for your small business.
  • Research new insurers, focusing on areas such as their reputation, financial strength, cover offered, and premiums charged.
  • Purchase new policies to address cover gaps, your business budget, and customer service expectations.
  • Cancel your old cover (making sure it ends the same day your new cover begins) and notify relevant business partners.

Switch and save with BizCover

Ready to switch your insurance provider? Consider BizCover!

We work with selected leading Australian insurers, offering clear and competitive prices to small business owners. With thousands of occupations to choose from, you can tailor policies to suit the needs of your business.

Even better – switching insurance providers with BizCover is easy! Compare quotes online or over the phone and buy in as little as 10 minutes. There’s no complicated paperwork to fill out, and you’ll be covered instantly.

Still not sure? You could be saving on your small business insurance, like these BizCover customers:

Join over 220,000 Australian small businesses who trust BizCover for their insurance needs. Switch and save today!

This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769

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